Thailand's Bangchak taps rich oil field of Norwegian giant OKEA | The Nation

Norway is unfazed by soaring electricity prices amid the Russia-Ukraine war as the country can produce clean electricity on its own, the CEO of Norwegian oil company OKEA ASA said.

That's good news for Thai energy giant Bangchak Corporation, which is poised to become the largest shareholder in OKEA after a US$535 million deal to buy Shell's stakes in Norway's Draugen and Gjoa fields.

OKEA CEO Svein J Liknes said the hike in electricity prices due to the Russia-Ukraine conflict had caused less impact on Norway than in other European countries that were reliant on importing gas.

He added that Norway is the biggest oil and gas supplier in Europe as most of its domestic production is exported.

According to the Norwegian Carbon Dioxide Capture, Transport and Storage Research Centre, 88 per cent of Norway's power supply comes from hydropower, followed by wind power (10 per cent), and others including solar and thermal energy (2 per cent).

"Norway was only forced to increase gas production capacity to meet rising consumers' demand amid the conflict," he said.

He also expected Norway's gas price to remain high until summer next year, depending on global demand and supply.

However, world energy trends were changing, Liknes said.

"Demand for gas and nuclear will soon replace coal," he said, adding that trend would shift to renewable energy around 2030 to 2035.

Norway is targeting carbon neutrality by 2030 and net-zero emissions by 2050.

OKEA has plans to extend the lifetime of its assets, exploring for recoverable resources and maintaining efficient operations to minimise the carbon footprint from production.

The company is cooperating with Thai conglomerate Bangchak on oil and gas exploration and production, focusing on reducing carbon dioxide emissions in overall operations.